Subordination clause

Subordination clause
A provision in a bond indenture that restricts the issuer's future borrowing by subordinating the new lender's claims on the firm to those of the existing bond holders. ...

Subordination Clause. In real estate lending, a clause in a mortgage that allows it to become junior to subsequent liens.

Debt over which senior debt takes priority. In the event of bankruptcy, subordinated debtholders receive payment only after senior debt claims are paid in full.
Subordination clause ...

subordination clause This is a clause found in some mortgages. It allows previous mortgages on the... subpoena This is an order for an individual to testify in a court of law.

See also: Indenture, Bond indenture, Banks, Expense, Life insurance policy